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Piper Jaffray senior research analyst Mark Zgutowicz on whether you should buy, sell or hold shares of LinkedIn.
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Stay -- So FaceBook tax net negative anticipation.
Really -- focus of most social media investors and the market hitting another intraday low today in fact but another social stop well -- why under the radar you could say that's linked in.
Shares are up more than 100%.
From Lincoln's IPO last may.
And my next guest thinks shares are undervalued joining me now is mark.
-- told -- senior research analyst at Piper Jaffray Lincoln of course reporting after the bell today and I just checked shares are down 2.3 percent.
Ahead of the earnings report despite expectations for -- sharply higher earnings.
Is Lincoln simply a victim of FaceBook and an overall weak market today.
Mark Cotton you know obviously it did there's obviously been a lot of volatility around social media so yeah I think you can attribute some of that weakness to.
You know confront a quarter some anxious you know -- in front of the report.
But isn't it -- and social media companies if you will because if you look at the performance since the IPO.
Lincoln up more than 100% as he said in FaceBook is down 45% FaceBook also hitting a new intraday low.
Today what are the differences between these two companies.
Bob I think there's a pretty significant differences one is almost I think -- -- is Linkedin is a professional.
Network.
-- you know FaceBook was really pure social and I think.
The key there is that you know we we keep our professionals socialize.
Very separated so I think that that sort of puts Lincoln on sort of a separate violin.
If you will relative to some of the social media sites such as FaceBook Tumblr.
Interest.
You know the other is just a business -- Linkedin gets you know roughly.
25% of its revenue.
From advertising that compares FaceBook yet there at 85% -- -- you know closer to 60% of its revenues coming from.
The hiring and staffing market which and that I -- yeah.
What -- is generating these advertising revenues right -- so.
Let's get -- the nitty -- for the investor so would you buy shares at this level of Lincoln around 93 dollars.
Yeah we definitely would be buyers of the shares here we we have an overweight rating on the stock -- and 45 dollar price started.
Really look at Linkedin is in early early stages of growth less than 5% penetrated in the hiring and staffing market.
As you know very little -- revenue its exposure to advertising today.
And there's a lot of I would say you know incremental opportunity on -- mobile.
And particularly at the tablet side as it just introduce a tabloid have not too long ago and and we expect to see some nice -- is -- what about that.
Security breach -- all those user passwords were -- -- actually be big problem for Linkedin gonna cost them a lot any downside pressure from that.
But we're not expecting much you know maybe as a penny or so but you know we'll wait and see on that the company hasn't provided any you know -- color on that.
Marks and told -- thank you so much for joining us.
